Changyou.com (CYOU) Declares $9.40 Special Dividend; 33.6% Yield

Changyou.com (NASDAQ: CYOU) declared a special dividend of $9.40 per share.

Sohu.com Inc. (NASDAQ: SOHU), China's leading online media, video, search and gaming business group, today reported that on April 5, 2018, Changyou.com Limited, Sohu's majority-owned online game subsidiary, announced that Changyou's board of directors has declared a special cash dividend of US$4.70 per Class A ordinary or Class B ordinary share, or US$9.40 per American depositary share ("ADS"), each of which represents two Class A ordinary shares. The aggregate amount of the special cash dividend will be approximately US$500 million.

The amount of the dividend payable to Sohu is expected to be approximately $340 million. Sohu does not expect to pay any of such dividend to its stockholders, as the proceeds will be used to support Sohu's operations.

In order to facilitate the distribution of this special dividend, Changyou has revised its policy for its PRC subsidiaries with respect to their distribution of cash dividends. Under the revised policy, all PRC subsidiaries in the Changyou Group will be able to distribute their cumulative available and undistributed earnings to their direct overseas parent companies in the Changyou Group. The change will result in Changyou's accrual of additional withholding income taxes of approximately $47 million for the period before December 31, 2017. As the parent company of Changyou, Sohu will also recognize incremental tax expenses in its financial statements for the quarter ended March 31, 2018.

Mr. Dewen Chen, Changyou's CEO, commented, "We are pleased to reward our shareholders with this special dividend, which reflects our continued commitment to drive value for investors over the long term. After this distribution, we are confident that we will have sufficient capital for our business, including to fully fund our R&D, execute game strategy, take advantage of new opportunities as they arise, and maintain our leading position in the online game market, and we believe that we will continue to be able to generate strong cash flows."

ayable on April 26, 2018, to stockholders of record on April 20, 2018, with an ex-dividend date of April 27, 2018.

The annual yield on the dividend is 33.6 percent.

For a dividend history and other dividend-related data on Changyou.com (CYOU) click here.

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